The Federal Reserve Board has established a tiered system for evaluating whether to grant access to its accounts and payment services, with ramifications for chartered fintechs and crypto firms.
Last May, the Fed set out guidelines for evaluating requests for accounts and payment services at Federal Reserve Banks by newly chartered fintechs. It sought to create a transparent and consistent set of factors when reviewing requests, based on six principles.
Following a public consultation, the Fed in March added a supplement that creates a tiered system depending on the level of risk a firm poses.
The guidelines have now been finalised. In a move expected to relate to firms dealing in areas such as crypto, the Fed says "institutions that engage in novel activities and for which authorities are still developing appropriate supervisory and regulatory frameworks would undergo a more extensive review".
In contrast, institutions with federal deposit insurance will be subject to a more streamlined level of review.
Vice Chair Lael Brainard says: "The new guidelines provide a consistent and transparent process to evaluate requests for Federal Reserve accounts and access to payment services in order to support a safe, inclusive, and innovative payment system."